Skadden Arps Slate Meagher & Flom LLP counsel Sharmistha Chakrabarti reveals that, after helping companies navigate the legal and practical challenges of leaving Russia, the focus is now shifting to formal dispute resolution. Investment treaty claims against Russia, previously scarce, are anticipated to rise, with examples like Carlsberg’s threat of a claim after the seizure of its stake in Baltika. Energoatom’s $3 billion claim against Russia over the Zaporizhzhia nuclear power plant expropriation adds to the growing list of impending disputes.
While the road ahead promises legal battles, Chakrabarti notes that businesses, shut down abruptly in 2023, are turning to arbitration as a means of recourse. The complexity and protracted nature of investment treaty claims against Russia are acknowledged, emphasizing that the fallout from the invasion will shape the arbitration landscape for years to come.
